One source said Tuesday that the big problem was Kelly was overwhelmed and didn't initially deal with the fallout over allegations of spousal abuse by former White House staff secretary Rob Porter's ex-wives. When he realized the problem, the source said Kelly went into a damage-control mode, but it was really cover-up mode, and asked people to say things that weren't true.

A second source says that Kelly was in over his head with personnel issues and that he has been hurt by his poor handling of the Porter allegations this week. This source indicated Kelly was further hurt by friends of Trump outside the White House saying he should go.

Cohn, a high-profile Jewish member of the administration and former Goldman Sachs executive, had told the Financial Times that Trump's handling of the Charlottesville violence and protests caused him "distress." Cohn said the administration "can and must do better" to condemn hate groups.